# Ultra Short Term funds

Debt and money-market securities with a portfolio duration of three to six months. Called Ultra Short Duration until SEBI renamed the debt categories in 2026.

Full page: https://discovermf.com/categories/ultra-short-term
Figures as of 3 Nov 2026, from DiscoverMF. Information, not investment advice. Past returns do not indicate future returns. Mutual fund investments are subject to market risks; read all scheme-related documents carefully.

27 funds managing ₹1.19 lakh cr. Category averages: +5.7% over one year, +6.6% a year over three years; typical expense ratio 0.82%.

## All funds, by three-year return

| Fund | 1 year | 3 years (a year) | 5 years (a year) | Volatility | Expense ratio | Fund size |
| --- | --- | --- | --- | --- | --- | --- |
| [Aditya Birla Sun Life Ultra Short Term Fund](https://discovermf.com/funds/aditya-birla-sun-life-ultra-short-term-fund-101317.md) | +6.1% | +7.2% | +6.6% | 0.5% | 0.58% | ₹15,246 cr |
| [Mirae Asset Ultra Short-Term Fund](https://discovermf.com/funds/mirae-asset-ultra-short-term-fund-148530.md) | +6.2% | +7.1% | +6.5% | 0.5% | 0.68% | ₹1,895 cr |
| [Baroda BNP Paribas Ultra Short Term Fund](https://discovermf.com/funds/baroda-bnp-paribas-ultra-short-term-fund-143464.md) | +6.2% | +7.0% | +6.5% | 0.4% | 0.44% | ₹574 cr |
| [HSBC Ultra Short Term Fund](https://discovermf.com/funds/hsbc-ultra-short-term-fund-147907.md) | +6.2% | +6.9% | +6.4% | 0.4% | 0.38% | ₹2,706 cr |
| [ICICI Prudential Ultra Short term Fund](https://discovermf.com/funds/icici-prudential-ultra-short-term-fund-115092.md) | +6.0% | +6.9% | +6.3% | 0.5% | 0.80% | ₹14,637 cr |
| [Bandhan Ultra Short Term Fund](https://discovermf.com/funds/bandhan-ultra-short-term-fund-144171.md) | +6.1% | +6.9% | +6.3% | 0.4% | 0.48% | ₹4,466 cr |
| [SBI Ultra Short Term Fund](https://discovermf.com/funds/sbi-ultra-short-term-fund-100641.md) | +6.1% | +6.9% | +6.3% | 0.5% | 0.58% | ₹11,364 cr |
| [Invesco India Ultra Short Term Fund](https://discovermf.com/funds/invesco-india-ultra-short-term-fund-114359.md) | +6.0% | +6.8% | +6.1% | 0.4% | 0.79% | ₹1,665 cr |
| [HDFC Ultra Short Term Fund](https://discovermf.com/funds/hdfc-ultra-short-term-fund-145040.md) | +5.8% | +6.8% | +6.3% | 0.5% | 0.71% | ₹14,944 cr |
| [Mahindra Manulife Ultra Short Term Fund](https://discovermf.com/funds/mahindra-manulife-ultra-short-term-fund-147734.md) | +6.0% | +6.8% | +6.2% | 0.4% | 0.73% | ₹241 cr |
| [Nippon India Ultra Short Term Fund](https://discovermf.com/funds/nippon-india-ultra-short-term-fund-143493.md) | +6.0% | +6.7% | +6.2% | 0.4% | 1.02% | ₹11,840 cr |
| [Kotak Ultra Short Term Fund](https://discovermf.com/funds/kotak-ultra-short-term-fund-102591.md) | +5.8% | +6.6% | +6.1% | 0.5% | 0.82% | ₹15,125 cr |
| [UTI Ultra Short Term Fund](https://discovermf.com/funds/uti-ultra-short-term-fund-102532.md) | +5.8% | +6.6% | +6.0% | 0.4% | 0.99% | ₹2,722 cr |
| [Tata Ultra Short Term Fund](https://discovermf.com/funds/tata-ultra-short-term-fund-146070.md) | +6.0% | +6.6% | +5.9% | 0.4% | 1.11% | ₹5,734 cr |
| [DSP Ultra Short Term Fund](https://discovermf.com/funds/dsp-ultra-short-term-fund-104138.md) | +5.7% | +6.5% | +5.9% | 0.5% | 1.01% | ₹3,751 cr |
| [Axis Ultra Short Term Fund](https://discovermf.com/funds/axis-ultra-short-term-fund-144759.md) | +5.7% | +6.5% | +5.9% | 0.4% | 1.24% | ₹5,273 cr |
| [Canara Robeco Ultra Short Term Fund](https://discovermf.com/funds/canara-robeco-ultra-short-term-fund-109371.md) | +5.7% | +6.4% | +5.8% | 0.4% | 0.92% | ₹533 cr |
| [WhiteOak Capital Ultra Short Term Fund](https://discovermf.com/funds/whiteoak-capital-ultra-short-term-fund-147307.md) | +5.7% | +6.3% | +5.8% | 0.4% | 0.82% | ₹573 cr |
| [LIC MF Ultra Short Term Fund](https://discovermf.com/funds/lic-mf-ultra-short-term-fund-147770.md) | +5.6% | +6.3% | +5.7% | 0.4% | 1.38% | ₹1,280 cr |
| [PGIM India Ultra Short Term Fund](https://discovermf.com/funds/pgim-india-ultra-short-term-fund-138343.md) | +5.5% | +6.3% | +5.9% | 0.4% | 0.93% | ₹245 cr |
| [Bank of India Ultra Short Term Fund](https://discovermf.com/funds/bank-of-india-ultra-short-term-fund-109269.md) | +5.7% | +6.3% | +5.8% | 0.5% | 1.01% | ₹222 cr |
| [ITI Ultra Short Term Fund](https://discovermf.com/funds/iti-ultra-short-term-fund-148906.md) | +5.5% | +6.2% | +5.6% | 0.4% | 0.91% | ₹164 cr |
| [Sundaram Ultra Short Term Fund](https://discovermf.com/funds/sundaram-ultra-short-term-fund-149535.md) | +5.2% | +5.9% | — | 0.4% | 1.45% | ₹2,046 cr |
| [Motilal Oswal Ultra Short Term Fund](https://discovermf.com/funds/motilal-oswal-ultra-short-term-fund-124233.md) | +5.1% | +5.6% | +5.1% | 0.4% | 1.12% | ₹500 cr |
| [Edelweiss Ultra Short Term Fund](https://discovermf.com/funds/edelweiss-ultra-short-term-fund-154622.md) | — | — | — | 0.5% | 0.66% | ₹1,112 cr |
| [Franklin India Ultra Short Term Fund](https://discovermf.com/funds/franklin-india-ultra-short-term-fund-152828.md) | +5.8% | — | — | 0.4% | 0.72% | ₹301 cr |
| [Union Short Term Fund](https://discovermf.com/funds/union-short-term-fund-153240.md) | +3.5% | — | — | 1.2% | 0.80% | ₹103 cr |

## Questions

### How many Ultra Short Term funds are there?

27 funds, managing ₹1.19 lakh cr between them as of 3 Nov 2026. The largest is Aditya Birla Sun Life Ultra Short Term Fund, at ₹15,246 cr.

### What return have Ultra Short Term funds given?

The average Ultra Short Term fund returned +5.7% over the last year, +6.6% a year over three years, +6.1% a year over five years. Over the last year the funds ranged from +3.5% to +6.2%. Past returns do not tell you future returns.

### Which Ultra Short Term fund has the lowest expense ratio?

HSBC Ultra Short Term Fund, at 0.38% a year, against 0.82% for the average fund in the category. The expense ratio is taken out of the fund every day, so every return shown is already after it.

### Which Ultra Short Term fund has the highest three-year return?

Aditya Birla Sun Life Ultra Short Term Fund, at +7.2% a year over the last three years, against +6.6% for the average fund. Past returns do not tell you future returns.

### How risky are Ultra Short Term funds?

Their volatility over the last year averaged 0.4%: the higher it is, the more the price swings from day to day. 19 of 27 carry the riskometer level Low to Moderate, on SEBI's six-step scale from Low to Very High.